If a 40% Change in Price Results in a 25

question 508

Multiple Choice

If a 40% change in price results in a 25% change in quantity supplied, then the price elasticity of supply is about

• A) 0.63, and supply is elastic.
• B) 0.63, and supply is inelastic.
• C) 1.60, and supply is elastic.
• D) 1.60, and supply is inelastid.

---

Definitions:

Highly Profitable

Describes a business, product, or service that generates significantly higher income than the average, often resulting from high-demand, effective cost management, or unique value propositions.

Retain Loyal Customers

Strategies and practices aimed at keeping customers who repeatedly buy from or support a business.

Infrequent Customers

Individuals who purchase goods or services from a business irregularly or rarely.

Survey Profitable

A survey method designed to understand the profitability of various aspects of a business, often focusing on customer satisfaction and product/service viability.